Privatization: Choosing the Optimal Time Path

We consider a government that wishes to choose the optimal time path of privatization. The government is concerned with maximizing output over some specified period while taking into account (1) the level of unemployment that will be attained as the end of that period, (2) the improvement in labor productivity of workers in the nationalized enterprises as a consequence of growing competition from privatized firms, and (3) the reemployment rate of the redundant workers displaced as their firms become privatized. We present a model exhibiting these features and derive the optimal policy that characterizes the rate of privatization within the period. When all of the elements noted above are present, we show it is never optimal to privatize instantaneously. We also show the relationship of the optimal rate of transition to the underlying objectives of the government. J. Comp. Econom., December 1993, 17(4), pp. 715-736. Stern School of Business, New York University, New York, New York 10012.     

Exploring Everyday Self-Regulation in Nearby Nature: Determinants,Patterns, and a Framework of Nearby Outdoor Recreation Behavior

The understanding of determinants and underlying mechanisms of everyday nearby outdoor recreation behavior (NORB) remains insufficient for use in urban planning. We explored the nearby recreational decisions of walkers, cyclists, and joggers in problem-focused interviews (N = 18). The identified influences include various demands of work and private life, strains, and action circumstances. Loads and strains showed several compensatory associations with NORB. These findings were synthesized into a NORB framework that offers empirically grounded hypotheses for future research. The proposed framework may help to integrate findings from different research fields while providing a more comprehensive understanding of NORB.     

The Loss of the Certainty Effect

Recent changes in the commercial property-liability insurance business have made it unlikely that large claims will be paid promptly and willingly. The situation is not limited to asbestos, pollution, and medical product liability, though certainly evident there. The authors examine the situation from three economic and psychological perspectives—option theory, asymmetric information theory, and prospect theory. All three indicate that if insurance were seen by customers as less than fully certain and reliable, the resulting discounting of its value—and hence buyers' willingness to pay for it—would be much deeper than one would expect. Although competitive and legal steps could be taken to head off such a disaster, none of them is likely.     

Product availabilty as a strategic variable: The implications of regulating retailer stockouts

We study product availability as a strategic variable in a sequential game between consumers and a monopolist. We use a perfect Bayesian equilibrium concept to solve the game under different regulatory regimes. We show that under certain assumptions about the regulatory environment, a two-price equilibrium in which the quantity of the lower-priced good is limited may exist even when a single retailer sells two brands that are perfect substitutes. The FTC Guides Against Bait Advertising are shown to be potentially welfare enhancing as they facilitate commitment on the part of a monopolist credibly to plan for stockouts. Paradoxically, our analysis suggests that the more stringent FTC regulation prohibiting stockouts by retail food stores from 1971 to 1988 was Pareto worsening, as it removed the monopolist's commitment mechanism.     

The Cult of Modernity

This article examines Strategic Performance Management Systems oftenintroduced as a key component of New Public Management. In doing so, it identifies some of the common and long-standing difficulties identified with the introduction and use of performance measures. The article then questions why such management systems are consistently advocated given some of the apparently serious dysfunctions that their introduction and use can engender. It concludes that these systems reflect a deeper attachment to what has been characterised as Enlightenment thinking, and that an archaeology of this style of thought is a necessary pre-requisite for understanding models of management that are promulgated.     

The effects of discussion and question wording on self and proxy reports of behavioral frequencies

Marketing research surveys often rely on one person to report about the consumption and purchase behavior of other household members. We report the results of an experiment examining how the level of discussion among household members and the wording of a recall question affect the accuracy of reports about the frequency of another household member’s behavior. The findings suggest two important implications. First, asking respondents for a count versus an estimate of the behavior affects both the level of reporting for others as well as the accuracy of such reports. Second, screening potential respondents on their level of discussion on a topic with their partner or family member may help reduce reporting error.     

The productivity effects of privatization: The case of Polish cooperatives

This paper evaluates the productivity effects associated with privatization of producer cooperatives. The results, based on a sample of 2164 Polish cooperatives, indicate that privatized cooperatives have: (1) 1% lower total factor productivity (TFP) the year prior to privatization and 3-20% higher TFP in the year of privatization and three years post-privatization, (2) 9-36% higher labor productivity, (3) capital productivity effects of − 16-6%. The evidence is consistent with governance and incentive mechanisms of cooperatives being more effective outside of state interference, and with competition and hard budget constraints leading to pressure to restructure and adopt practices that improve productivity.